Cost Transparency
Detailed monthly breakdown for Germany.
Base Gross Salary
Employer Social Taxes
worknow EOR Fee599,00 €
Total / Month
Licensed by the Federal Employment Agency (Bundesagentur für Arbeit).
Employer of Record (EoR) for Germany
With deep expertise in German employment law, we support international companies in hiring staff in Germany with confidence. As your Employer of Record, we assume legal employer responsibility and ensure full compliance with local regulations.
Employment & Labor Law
Employment of your workforce in full compliance with German labor law, based on the EOR / AÜG model.
Payroll & Statutory Contributions
End-to-end payroll processing, including salary payments and the calculation and remittance of taxes and social security contributions.
Contracts & Documentation
Preparation and ongoing management of employment contracts, contract amendments, and all required labor-law-related documentation.
Compliance & Authorities
Ensuring full labor-law compliance and handling coordination and communication with all relevant authorities.
How we work with you as your Employer-of-Record (EoR)
We deliberately don’t operate as a platform.
Instead, we provide personal support, clear ownership, and direct communication.
→ Custom Contract Drafting
Employment contracts are individually drafted by our in-house team and tailored to role, compensation, and local requirements.
Every contract undergoes final legal review by senior management — no templates, no one-size-fits-all documents.
Every contract undergoes final legal review by senior management — no templates, no one-size-fits-all documents.
→ Guided Onboarding
We manage the entire onboarding process end-to-end — for both employer and employee — from preparation through day one.
How the Employer or Record model works in Germany
Your Responsibilities (Client Company)
→ Day-to-day management of the employee
→ Task assignment and prioritisation
→ Performance management and team leadership
→ Business decisions and objectives
✔︎ You manage how the work is done and what the employee works on.
Our Responsibilities (EoR Provider)
Employment contracts under German law
Payroll, salary payments, taxes, and social security
Statutory benefits and mandatory insurances
Compliance, employment changes, and terminations
✔︎ We assume full legal employer responsibility for the employment.
As the Employer of Record, we act as the legal employer, while you retain full operational control over your employees’ day-to-day work. All employment relationships are structured in accordance with the legally defined employee leasing model (AÜG) applicable in Germany.
✔︎ We hold the required AUG-Licence from the German Federal Employment Agency (Bundesagentur für Arbeit) to provide Employer of Record services.
Why Germany is Especially Complex
Germany has one of the most regulated labor markets in Europe. Strict employment protection, mandatory social security systems, and complex termination rules make compliant hiring challenging without a local legal setup.
PROTECTION
Strong Employee Protection
Hiring in Germany means navigating one of the most protective labor systems in the world — mistakes are costly.
COMPLIANCE
Complex Employment Contracts
German employment contracts follow strict legal rules, with collective agreements partially applying and adding further complexity.
REGULATIONS
Employer of Record = AÜ
In Germany, the Employer of Record model is legally classified as employee leasing (AÜ) and requires an official license.
LEGAL
Strict Enforcement of the AÜ Act
The German AÜ Act is actively enforced, with audits, fines, and significant compliance risks.
VIEW AÜ LICENSE —
What does it really cost to hire in Germany?
Calculate your total employment costs with our worknow Cost Calculator.
Monthly Gross Salary
€
Total Employment Costs
0,00 €
EOR Fee (BEST Plan)
599,00 €
Employer cost structure in Germany
- Based on a Gross Salary = 100%
- Pension insurance (9.3 %) – statutory retirement fund
- Health insurance (8.9 %) – statutory health insurance
- Long-term care insurance (1.8 %) – nursing and care contribution
- Unemployment insurance (1.3 %) – unemployment protection
- U1 (2.5 %) – reimbursement (partial) for longtime sickness
- U2 (0.34 %) – reimbursement for maternity and parental leave
- U3 (0.15 %) – insolvency levy
Employers in Germany pay about 24 % on top of gross salary in mandatory contributions.
These contributions ensure strong social protection but make employment administration complex — worknow handles payroll, benefits, and compliance for you, so you know exactly what employment in Germany really costs.
worknow fees
- check our complete pricing overview here
- Our Employer of Record service provides full employment, payroll, and compliance coverage in Germany.
- We handle all statutory obligations — from contracts and payslips to social security, benefits, and tax filings — so you can focus on your business.
- Our EOR Service Fee is standard at 599 Euro plus 199 Euro for On- and 199 Euro for Offboarding.
- We provide a clear, all-inclusive monthly fee that covers everything required for compliant employment in Germany.
- The monthly service fee covers all employment administration, payroll, statutory filings, benefits coordination, and local compliance.
- Fees only apply while the employee is actively employed under worknow’s EOR arrangement.
- Payments for gross salaries and employment costs are due by the 15th of each month, with salary disbursement on the third-last German banking day.
- A deposit equal to 1.5 month’s gross salary + employer contributions per employee is required before onboarding and will be offset against the final payroll upon termination.
Get in touch for a transparent quote based on your specific needs.
Paid time off and holidays in Germany
worknow ensures fair, transparent and fully compliant employment conditions in Germany, based on applicable German labor law and statutory requirements.
Employees benefit from strong employment protections, clearly regulated working conditions and paid leave.
Annual vacation is defined in line with German law and is commonly extended contractually depending on the role, seniority and overall employment setup.
- Germany observes 9 to 13 public holidays, depending on the federal state in which the employee is based. For example, Bavaria and Baden-Württemberg have more public holidays than Berlin or Hamburg.
- In case of illness, employees in Germany continue to receive their full salary for up to six weeks, as required by German law.
- Statutory reimbursement mechanisms apply, ensuring predictable employer costs.
Overall, German labor law provides a high level of employee protection. worknow ensures that all employment conditions are implemented correctly and in full compliance from day one.
Here’s what you can expect from us.
SPEED
Fast Onboarding
Onboarding within 1-3 days – even on weekends, if all documents are ready. Fast, practical and flexible.
START NOW —
SAFETY
Full Compliance
We operate with a valid German labour leasing licence (AÜG). Your business and employees are always safe.
LEARN MORE —
SERVICE
Direct Support
Dedicated contact person for every client and employee. Available 6 days a week, 365 days a year.
GET SUPPORT —
LOCAL
Local Presence
Our team members are based in all major German cities, ready to support you directly on the ground.
LOCATIONS —
TRUST
Fixed Pricing
Transparent monthly fees with no hidden charges. Clear communication for your financial planning.
CHECK PRICING —
EXPERTISE
Proven Track Record
Largest supplier for Uber & Uber Eats in Germany. We manage complex workforce projects reliably.
CASE STUDIES —Fair & Transparent EoR Pricing
Transparent fees. Reliable service. Local expertise.
We believe in clear and predictable costs, which is why our pricing model is fully transparent, legally compliant, and tailored to meet the specific requirements of your business in Germany. No hidden fees. No bundled extras. No compliance shortcuts. All plans include full Employer of Record services with payroll, taxes, and local compliance covered. Choose the level of flexibility and support that fits your team — with no hidden fees.
FAQs for Employer of Record Services
What does Employer of Record mean at worknow?
An Employer of Record (EOR) enables companies to employ staff in another country in a fully compliant manner without setting up a local legal entity. worknow operates exclusively in Germany and acts as the legal employer for employees hired in Germany on behalf of foreign companies.
Where employees are hired and perform their work in Germany, Employer of Record arrangements fall under Germany’s labour leasing framework. According to the prevailing legal view, EOR models with a German nexus qualify as labour leasing (Arbeitnehmerüberlassung). For this reason, worknow operates its EOR services accordingly and holds the required AUG licence issued by the German Federal Employment Agency.
Based in Berlin, with in-depth knowledge of German labor, tax and social security law and the required legal authorizations, worknow ensures that employment in Germany is fully compliant. Our approach focuses on personal support, clear processes and direct accessibility.
Which services does worknow provide as an Employer of Record?
worknow assumes all legal and administrative employer responsibilities in Germany. This includes the preparation of compliant German employment contracts, full payroll processing, payment of taxes and social security contributions and all required filings with authorities and social security institutions.
Day-to-day management and operational collaboration with the employee remain fully with the client company.
How does payroll work at worknow?
As Employer of Record, worknow bears full responsibility for accurate and timely payroll in Germany. Salaries are paid on time, all statutory deductions are correctly processed and all reporting obligations are fulfilled.
This allows foreign companies to employ staff in Germany without having to deal with the complexity of German payroll, tax and social security regulations themselves.
What are the costs of using worknow?
worknow’s standard monthly EOR fee is EUR 599 per employee. This fee covers ongoing Employer-of-Record services, including payroll, compliance and administrative support.
In addition, a small one-time onboarding fee and a one-time offboarding fee apply. All costs are communicated transparently before the start of the engagement. worknow does not charge hidden fees or percentage-based fees on employee salaries.
Can I hire employees in Germany without an Employer of Record?
worknow is not a global platform provider, but a Germany-focused Employer of Record. With a clear regional focus, a Berlin headquarters and personal support, worknow offers a significantly higher level of legal certainty than broadly positioned international providers.
Instead of anonymous workflows, you work with dedicated contacts who understand German labor law and take your specific situation into account.
How does worknow differ from international EOR providers?
worknow is not a global platform provider, but a Germany-focused Employer of Record. With a clear regional focus, a Berlin headquarters and personal support, worknow offers a significantly higher level of legal certainty than broadly positioned international providers.
Instead of anonymous workflows, you work with dedicated contacts who understand German labor law and take your specific situation into account.
AUG Licence
Where employees are hired and perform their work in Germany, Employer of Record arrangements fall under Germany’s labour leasing framework. According to the prevailing legal view, EOR models with a German nexus qualify as labour leasing (Arbeitnehmerüberlassung). For this reason, worknow operates its EOR services accordingly and holds the required AUG licence issued by the German Federal Employment Agency.
As part of the licensing process, the Federal Employment Agency conducts regular and comprehensive reviews of a provider’s reliability, financial stability, and full compliance with wage payments and social security contributions. An indefinite AUG licence is only granted after several years of audits without any objections, making it a strong indicator of long-term compliance and operational stability.
Is there a minimum or maximum duration for employment with worknow?
There is no minimum duration for employment with worknow.
Under German law, employment within an Employer-of-Record / employee leasing setup is subject to a maximum duration of 18 months. worknow ensures that this statutory limit is observed and supports you in structuring the engagement accordingly.
If longer-term employment in Germany is planned, worknow is happy to advise on alternative, compliant setups.
Can worknow provide a company car or fuel card?
No. As an Employer of Record, worknow does not provide company cars or fuel cards.
Due to the limited duration of EOR arrangements and the financial, legal and tax risks associated with vehicle leasing, this is not feasible. As an alternative, clients may arrange a vehicle directly, for example through a long-term rental. Where applicable, worknow can reflect private-use taxation or mileage reimbursement in a compliant way via payroll.
Bonus Payments & Incentives
Can we include bonus agreements in the employment contract?
To maintain maximum flexibility and a clear separation of legal liability, worknow GmbH does not fix any performance-related bonus entitlements in the primary employment contract.
Our role is to provide a compliant platform for your international or local hiring needs.
Regarding incentives, we operate under the following principles:
- Discretionary Nature: Any rewards or incentives are treated as purely discretionary payments initiated by the client. These are not part of the core contractual salary obligations of worknow GmbH.
- The Pass-Through Model: We act solely as a technical processing agent. A payout can only be facilitated if the client explicitly requests it and provides the necessary funds in advance.
- Budgeting for Ancillary Costs: Please be aware that the total cost for a bonus includes the gross amount plus approximately 25% in employer-side contributions (social security, etc.).
- Execution only upon Funding: worknow GmbH will process the payment through the next available payroll once the full amount (including all employer costs) has been secured.
The Benefit: This structure ensures that you retain full control over your budget on a month-to-month basis without creating long-term legal precedents or fixed contractual liabilities for either party.
How does the collaboration with worknow start?
Getting started with worknow is simple.
You send us a short email outlining your hiring plans in Germany, including who you want to hire, for which role, the intended start date, the planned salary and the expected duration of employment.
Based on this information, worknow reviews feasibility and, in most cases, completes the entire setup within 3–5 business days. Where required, we are also able to progress steps over weekends to meet tight timelines. Throughout the process, you are supported by a dedicated contact to ensure a compliant, transparent and straightforward setup.
You send us a short email outlining your hiring plans in Germany, including who you want to hire, for which role, the intended start date, the planned salary and the expected duration of employment.
Based on this information, worknow reviews feasibility and, in most cases, completes the entire setup within 3–5 business days. Where required, we are also able to progress steps over weekends to meet tight timelines. Throughout the process, you are supported by a dedicated contact to ensure a compliant, transparent and straightforward setup.
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worknow GmbH
Schlüterstraße 37
D-10629 Berlin
info@w-now.de
worknow.
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